Rackspace’s Enhanced Pay and Leave Practices Featured by FORTUNE Magazine Editors on “100 Best Companies to Work For” List

Rackspace® Hosting, (NYSE:RAX),
the open cloud company, today announced it has climbed to 34th
on FORTUNE magazine’s annual list of the “100 Best Companies to Work
For.” FORTUNE has named Rackspace as one of America’s top workplaces in
five of the last six years. The full list and related stories will
appear in the February 4 issue of FORTUNE, and today at
fortune.com/bestcompanies.

“We are honored to once again be included among the great companies on
the FORTUNE list, and know that our Fanatical Support and employee
engagement got us here,” said Lanham Napier, CEO of Rackspace. “Our
employees — we call them Rackers — make our company great. I want to
thank them for their work to preserve and improve our unique company
culture, even as we grow.”

Rackspace has invested heavily in the company’s unique culture, in
training and in creating fun and dynamic work environments for Rackers.
Rackspace’s enhanced pay and leave practices were featured by Fortune
editors who noted Rackspace’s policy of offering stock options to all
employees upon being hired. In 2012, Rackspace also implemented a
favorable Employee Stock Purchase Program and increased the number of
paid days off, including three paid days for volunteer work outside of
the office.

Underpinning Rackspace’s culture is a complex business process that the
company has refined over the past decade. That process involves
everything from the way Rackspace recruits and extensively interviews
prospective Rackers, to the way it tests for and develops a Racker’s
specific strengths, to the way it empowers Rackers to spend time and
money on customer issues, to the way it measures employee and customer
engagement down to the support-team level, to the way it celebrates and
rewards success.

The 2012 introduction of Rackspace’s open cloud marked the first time
any company deployed a large-scale open source public cloud powered by
OpenStack. Rackspace customers can now select from private or public
cloud, dedicated, virtualized or hybrid offerings and have the
flexibility to deploy their private cloud in their own datacenter, a
Rackspace data center or another data center of their choice.

The open cloud platform joined over 75 products and services launches
that San Antonio-based Rackspace released in 2012, reflecting a
commitment to invest in innovation.

Rackspace intends to maintain its positive momentum heading into 2013 by
continuing to expand the scope of its OpenStack-based solutions
portfolio. In the near future, Rackspace plans to continue to enhance
its portfolio with solutions for high growth opportunities, including
Big Data, high scale applications, software defined network enhancements
and enterprise needs, among others.

Rackspace continued to expand its global workforce in 2012. Using
first-quarter figures — the latest that had been made public when the
FORTUNE survey was taken — Rackspace had expanded employment
by 24.1 percent from the same quarter in 2011, to more
than 4,335 employees. Rackspace currently has more than 230 positions
open in San Antonio, Austin, San Francisco, Blacksburg and a half-dozen
other U.S. cities, as well as in Europe, Australia, and Asia. Those
openings, in departments ranging from software development to tech
support and sales, can be seen at http://www.rackertalent.com/.

CIO, CTO & Developer Resources

FORTUNE Survey Methodology

To pick the 100 Best Companies to Work For, FORTUNE partners with the
Great Place to Work Institute to conduct the most extensive employee
survey in corporate America. Two-thirds of a company's score is based on
the results of the institute's Trust Index survey, which is sent to a
random sample of employees from each company. The survey asks questions
related to their attitudes about management's credibility, job
satisfaction, and camaraderie. The other third of the scoring is based
on the company's responses to the institute's Culture Audit, which
includes detailed questions about pay and benefit programs and a series
of open-ended questions about hiring practices, internal communications,
training, recognition programs and diversity efforts.

About Rackspace Hosting

Rackspace® Hosting (NYSE:RAX)
is the open cloud company, delivering open technologies and
powering more than 197,000 customers worldwide. Rackspace provides its
renowned Fanatical Support® across a broad portfolio of IT
products, including Public Cloud, Private Cloud, Hybrid Hosting and
Dedicated Hosting. Rackspace has been recognized by Bloomberg
BusinessWeek as a Top 100 Performing Technology Company, is featured on
Fortune’s list of 100 Best Companies to Work For and is included on the
Dow Jones Sustainability Index. Rackspace was positioned in the Leaders
Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed
Hosting.” Rackspace is headquartered in San Antonio with offices and
data centers around the world. For more information, visit www.rackspace.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve
risks, uncertainties and assumptions. If such risks or uncertainties
materialize or such assumptions prove incorrect, the results of
Rackspace Hosting could differ materially from those expressed or
implied by such forward-looking statements and assumptions. All
statements other than statements of historical fact are statements that
could be deemed forward-looking statements, including any statements
about historical results or third party data that may suggest trends for
our business or industry; any statements of the plans, strategies, and
objectives of Rackspace for future operations or growth; any statements
of expectation or belief regarding future events, and any statements of
assumptions underlying any of the items mentioned. Risks, uncertainties
and assumptions include the possibility that expected growth or success
may not materialize because of Rackspace's failure to sustain a culture
that inspires employees to provide Fanatical Support, failure to execute
on its operational plans, rapid technological changes that adversely
affect the demand for Rackspace products and services, shifts in
customer demand, customers' and potential customers' acceptance of
Rackspace products and services, and other risks that are described in
Rackspace Hosting's Form 10-Q for the quarter ended September 30, 2012,
filed with the SEC on November 7, 2012. Except as required by law,
Rackspace Hosting assumes no obligation to update these forward-looking
statements publicly, or to update the reasons actual results could
differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future.

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